2025

Canada–US Agriculture in Focus

Get the Facts:

Canada and the United States (U.S.) share one of the most significant agricultural trading relationships in the world. Over half of Canada’s agri-food imports originate in the U.S., while 60% of Canada’s agri-food exports head south. Any disruption—like new tariffs—will directly impact farmers, food businesses, and consumers on both sides of the border.

With protectionist sentiments on the rise, our cross-border supply chains face serious risks. Now more than ever, dialogue, advocacy, and collaboration are essential to ensure our agricultural sectors remain strong and mutually beneficial.

The Canadian Federation of Agriculture (CFA) is working closely with government officials, industry stakeholders, and U.S. counterparts to ensure our farmers’ voices are heard. We aim to maintain open trade channels, emphasize the interdependence of our sectors, and continue to address emerging challenges.

Support for Canadian agriculture and agri-food industries impacted by trade disruptions

Latest Updates

April 15, 2025, the Minister of Finance, the Honourable François-Philippe Champagne, announced new measures for Canadian businesses and entities affected by the tariff dispute between Canada and the United States.

Further details are available in the Order in Council.

If you have questions about Canada-United States-Mexico Agreement (CUSMA) compliance, there is now a direct phone line to support you. The Trade Commissioner Service has a new dedicated line that offers information on the rules of origin, customs procedures, and certification under the CUSMA. Please call 1-833-760-1167 | Monday to Friday, 7 a.m. to 8 p.m. ET.

For more information, visit: Understanding CUSMA/USMCA compliance
Please send any tariff related questions to: aafc.roundtable-tableronde.aac@agr.gc.ca

April 3 -The U.S. imposed a 25 per cent tariff on Canadian automobiles

Canada’s countermeasures include:

Effective date to be confirmed, 25 per cent tariffs on non-CUSMA compliant vehicles imported into Canada from the United States, and a 25 per cent tariff on non-Canadian and non-Mexican content of CUSMA compliant vehicles imported into Canada from the United States.

In addition, Canada intends to develop an auto tariff remission framework that reflects and incentivizes production and investment in Canada.

March 6, 2025 – Agriculture and Agri-Food Canada 

Summary of AAFC Information Call on Trade and Tariffs

Feb 21, 2025 – U.S.- Canada Trade

State-by-State Impact

February 3, 2025 – Justin Trudeau on X

Proposed tariffs will be paused for at least 30 days.

February 2, 2025 – Department of Finance Canada

Government of Canada announces next steps in its response plan to unjustified U.S. tariffs

Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, unveiled the full list of items covered by tariffs on $30 billion in goods imported from the U.S., the first phase of Canada’s response to unjustified U.S. tariffs on Canadian goods.

Process for requesting remission of tariffs that apply on certain goods from the U.

Key Objectives

1. Strong Federal Leadership

It is imperative that the Government of Canada shows strong and focused leadership on this issue, supporting farmers advocacy efforts south of the border through consistent, clear, and coordinated communication efforts.

2. United, Strategic Approach

Canada’s message should be clear, tariffs on agricultural products will have a negative effect on businesses and consumers on both sides of the border. 

3. Maintain All Options

A comprehensive approach should be undertaken that includes advocating for targeted exemptions and consideration of tariff and non-tariff responses, compensation for affected industries, and promoting further trade diversification, where possible.

4. Safeguard Domestic Supply Chains

If required, when planning countermeasures, keep Canadian producers in mind, especially those who rely on cross-border inputs. It’s important to support our farmers in maintaining their competitiveness while also nurturing those vital supply relationships that are so crucial for our collective success.

 

Key Messages

Canada and U.S. trade is important for the U.S. and Canadian economies.

  • Every day over US$2.5 billion worth of goods and services crosses the Canada-U.S. border.
  • The U.S. sells more goods to Canada than to any other country. Canada buys more U.S. goods than China, Japan, and Germany combined.
  • Canada is also the largest export market for 36 states, and top three for 46 states; 43 states export over US$1 billion to Canada every year.
  • Any measures that disrupt integrated North American agri-food supply chains will increase of cost of food and other agricultural products on both sides of the border.
 

Imports from Canada feed U.S. industry, making it stronger and more competitive. 

  • Roughly 70% of Canadian goods exports to the United States are used in the production of other goods.
 

The U.S. only has a trade deficit with Canada when you include energy exports.

  • While the US had a $41 billion trade deficit with Canada last year, a third of what Canada sells into the US are energy exports where prices have been high.
  • If we remove oil from the equation, the U.S. consistently runs a steady trade surplus with Canada.
  • In 2023, Canadians spent on average 6 times more per person on U.S. agricultural products compared to what Americans spent on Canadian products.  
  • The recent Canada-U.S. agricultural trade imbalance in Canada’s favour is due to higher import values, not increased volumes. Notably, agricultural trade includes inputs like pesticides and equipment, where the U.S. holds a trade surplus.

     

Latest Updates

Canadian Association of Food Studies Assembly

June 2-3rd 

CAFS works to support critical, interdisciplinary scholarship and practice across the many issues that food systems comprise.

National Workforce Strategic Plan

June 11-12th

Canada’s agriculture and food and beverage manufacturing sectors are experiencing severe chronic labour and skills shortages while growing one of Canada’s largest employment and economic sectors. A national, actionable roadmap will create the desired workforce of the future that addresses immediate labour gaps and systemic issues.

G7 / F7 and IICA Policy Roundtables

June 16-17th 

The Group of Seven (G7) is an informal grouping of 7 of the world’s advanced economies and the European Union. Its members meet annually at the G7 Summit to discuss global economic and geopolitical issues.

Food Banks Canada – Food Insecurity Summit

June 18th 

A one-day event bringing together leaders, experts, and change makers in the Canadian food insecurity sector. It is meant to garner commitment towards a common agenda that will change the direction of food insecurity across the country and aims to inspire and motivate participants to take action and implement change within their own contexts.

We are Canada's Farmers

Stay ahead of the curve with this overview of Canada–US agricultural trade.
Understand the real trade numbers, the impact of potential tariffs, and why our cross-border partnership matters.